Alberta’s government is committed to helping drivers manage their rising insurance premiums. Albertans will continue to benefit from the good driver rate cap in 2026, as government advances a new care-first auto insurance system set for 2027.

Drivers in Alberta with a good driving record will continue to benefit from a 7.5 per cent rate cap when their policies come up for renewal in 2025 and through 2026. With the rate cap, good drivers will spend less on insurance and more on the things that matter most – like their families, groceries and paying their rent.

“Albertans deserve an auto insurance system that works for them. By keeping the rate cap in place this year, good drivers avoid higher costs and keep more money where it belongs – in their pockets.” 

Nate Horner, President of Treasury Board and Minister of Finance

To be eligible for the rate cap in 2026, drivers will need to have no minor traffic convictions within the past three years, in addition to meeting existing criteria. 

The Automobile Insurance Rate Board is further limited from approving a rate change greater than an average of 12.5 per cent for all policyholders, up from the previous 10 per cent. The limit controls how much premiums can rise overall, making sure companies keep overall policy costs in check.

These changes help keep auto insurance predictable and affordable.

Earlier this year, Alberta’s legislature passed the Automobile Insurance Act, which outlines the government’s care-first insurance model. The new care-first auto insurance system is expected to further stabilize rates for drivers over the long term, once implemented in 2027. 

The care-first model will help Albertans see more stable premiums and receive the best benefits in Canada if they are injured in a collision. Alberta’s government will continue to work with stakeholders, including auto insurers, brokers and health care practitioners to ensure a successful transition to the care-first auto insurance system.

Through changes to the auto insurance system, the government is putting Albertans first: making premiums more stable and affordable, while delivering the best care for collision in Canada.

Quick facts

  • Good drivers will continue to see total rate increases capped at 7.5 per cent: five per cent in general, plus 2.5 per cent to help address claims costs after natural disasters, such as the 2025 Calgary and Brooks hailstorms.
  • Drivers must meet updated criteria to remain eligible for the rate cap including having:
    • No at-fault accidents in the past six years.
    • No Criminal Code traffic convictions in the past four years.
    • No major traffic convictions in the past three years.
    • No minor traffic convictions in the past three years.
  • The new care-first auto insurance system is expected to come into effect in January 2027.

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